Law No. 31110: Agricultural Labor Regime and Incentives for the Agricultural, Irrigation, Agro-Export and Agro-Industrial Sectors

Law No. 31110, published on December 31, 2020 and effective from January 1, 2021, establishes an agricultural labor regime and promotional provisions for agricultural, irrigation, agro-export and agro-industrial activities falling within its scope. Its purpose is to guarantee workers' labor rights while contributing to the development and competitiveness of these sectors. The law regulates employment contracts, working hours, basic remuneration, statutory bonuses, severance-related benefits, the Special Agricultural Work Bonus (BETA), annual leave, profit sharing and collective labor rights. It also establishes provisions concerning social security, healthcare coverage, occupational risk protection, employer obligations and labor inspections conducted by the National Superintendency of Labor Inspection (SUNAFIL). In taxation, the original law established differentiated corporate income tax rates, depreciation mechanisms for investments in hydraulic and irrigation infrastructure, and other benefits subject to specific conditions and time limits. Its scope covers individuals and legal entities engaged in crop cultivation or livestock production and certain agro-industrial activities, subject to statutory exclusions. For PAESA purposes, its principal policy instruments are agricultural labor regulation and labor inspection mechanisms. The law does not establish a separate agricultural credit program, direct subsidies, technical assistance, public procurement or input distribution. Tax changes introduced by Law No. 32434 should be assessed separately rather than retroactively attributed to Law No. 31110.